The benefits of investing in commercial property in Navi Mumbai

Navi Mumbai has become a major attraction for potential investors in the real estate sector. As a result of its lower property prices and its high rating on various parameters such as infrastructure, cleanliness, etc., it was only a matter of time before the city of Navi Mumbai received so much attention from potential investors. And this attention was very well deserved indeed!

Many investors, though, often get confused when they set out to decide whether to invest in a residential property or in a commercial property in Navi Mumbai. This is a catch 22 situation as there are perks for both types of investments. However, commercial properties have a few more benefits than residential properties, especially in Navi Mumbai. This article lists all such benefits of investing in a commercial space in Navi Mumbai.

Higher ROI

Even though the residential real estate sector assures a decent ROI for investors, it still falls short of the ROI that a commercial office could bring in. Many small and large companies are moving to Navi Mumbai because of its cheaper property prices in comparison to Mumbai. And this trend isn’t likely to die down any time soon because builders like Vishwa Green Realtors are developing high quality and affordable commercial space for sale in Navi Mumbai. Hence, the demand for commercial spaces is only going to increase. A high ROI is almost guaranteed, and a higher ROI than a residential sector investment is a certainty.

Higher rent

Let us say that you invest Rs 50 lakhs in a residential property. You could earn a maximum of

Rs 1,80,000 as rent from the investment. On the other hand, an investment of the same amount in commercial property could fetch you a yearly rent of up to Rs. 4,80,000. The rental income for residential properties is limited to 2 to 3.5% of the cost of the house per year, while the rental income from a commercial office space would be anywhere between 6 to 10% of the cost of the property per year.

Longer lease periods

Residential properties in Maharashtra are usually rented out for a maximum of 33 months. Commercial properties, on the other hand, could well be leased out for a period of 9 years! This means that you won’t have to go through the hassle of finding a new lessee every once in a while and also won’t need to shell out registration and notary fees again and again.

Better financing options

With a residential property, you’d have to shell out a significant amount as down payment, in case you are purchasing the property by taking a loan. For commercial spaces, though, the down payment amount could be very negligible. Also, lenders offer flexible payment options to commercial property buyers. The interest may also be lower if you negotiate effectively because commercial properties are very safe investments.

Also, Read - 4 documents you must check prior to a property purchase in Navi Mumbai